A proposal by World Liberty Financial to release 62 billion WLFI tokens is on track to pass with overwhelming support, having surpassed the required quorum and garnered nearly unanimous backing. The plan involves the founders, team members, and partners relinquishing 10% of their token holdings, equivalent to approximately 4.5 billion WLFI, to initiate a five-year unlocking schedule for the remaining 40.7 billion tokens following a two-year waiting period.
As a result, no tokens will enter the market for at least two years due to the cliff period. This development signifies a fundamental shift in the valuation of WLFI, replacing indefinite lockups with a predictable supply schedule and providing a clearer exit strategy for holders who previously lacked one.
The proposal has received 99.5% voter approval, underscoring the concentrated nature of WLFI's governance structure. The voting patterns align with those of previous proposals, suggesting that a small group of major holders can drive significant tokenomic changes with minimal opposition. Notably, voting power is predominantly held by a small group of large holders, with the largest wallet accounting for nearly 13% of the votes cast and the top four wallets collectively controlling around 40% of the total voting power, thereby exerting substantial influence over the outcome. Additionally, WLFI is facing a lawsuit from Tron founder Justin Sun, who alleges that his tokens were frozen and his governance rights were revoked, claims that the company has denied.